Global Trade
Exports debate shows new oil and gas production creating American jobs
This morning, ExxonMobil filed our submission with the U.S Department of Energy for the open-comment period of a recent study on the economic implications of LNG exports. That study concluded that natural gas exports would yield net economic benefits for the United States. Its conclusions also reinforce the fact that the country’s enormous natural gas resource base can support both growing domestic use of natural gas for manufacturing and electricity generation as well as LNG exports.
Honest debate on exports requires adherence to facts
Last week, a small gaggle of companies petitioned the federal government to limit the ability of other companies to export their products – in this case liquefied natural gas (LNG). This small group – which calls itself America’s Energy Advantage (AEA) – is playing a weak hand, given what we know about the economic benefits realized by those nations that embrace free trade. Their anti-exports position is not helped by the “facts” the group is marshaling to defend its position that free trade for energy products will cause economic harm.
Opponents of LNG exports miss the paradigm shift
The technological revolution that has unleashed the tremendous increase in U.S. domestic energy production has turned traditional thinking about America’s energy and economic policies on its head. As a result, in just a short period of time our public policy debates have transitioned from multi-decade discussions of scarcity and limits to growth, to discussions of American energy abundance and the enormous benefits that it can offer. Yet not everyone has gotten that message.
A Constitutional lesson on exports
As the public dialogue progresses on whether the federal government should restrict exports of natural gas, it’s important to note that our nation’s discussion of free trade goes back to its earliest days. The compromise on exports that emerged from the Constitutional Convention in 1787 has played a positive role in shaping America’s economic history – helping transform a loose affiliation of disparate colonies into a dynamic and innovative economic powerhouse.
Re-Affirming the Benefits of Free Trade
The government has released a long-awaited study concluding the U.S. economy as a whole would benefit from exports of some of the abundant natural gas supplies that have been unlocked by the industry’s new technologies. The study looked at all sectors of the economy and in every scenario concluded the net gains from exporting natural gas were greater than any localized loss. This is how free trade works — whether you’re talking about U.S. exports of wheat, computers, or automobiles.
PNTR for Russia a boon for American exporters
The U.S. Senate can give American workers and manufacturers a big boost – and at the same time support free trade and international cooperation – by following the lead of the House of Representatives and passing Permanent Normal Trade Relations (PNTR) with Russia. Doing so will help fully open the world’s ninth-largest economy to U.S. exporters. But a failure to act will keep U.S. manufacturers at a significant disadvantage compared to international competitors.
